IAC Announces Sale of Care.com to Pacific Avenue Capital Partners: Key Details for Investors

Transaction Overview

IAC Inc. (NASDAQ: IAC) has entered into a definitive agreement to sell its wholly-owned subsidiary, Care.com, to an affiliate of Pacific Avenue Capital Partners, a global private equity firm specializing in corporate carve-outs in the middle market. The deal is an all-cash transaction with a gross purchase price of approximately \$320 million. The acquisition is expected to close in the first half of 2026, subject to customary closing conditions.

Strategic Rationale

• Portfolio Streamlining: IAC is continuing its strategy to sharpen focus on its core assets, specifically People Inc. and its stake in MGM Resorts International, while monetizing non-core holdings to enhance financial flexibility and simplify its portfolio.
• Unlocking Value: The sale of Care.com allows IAC to unlock value from a non-core asset, providing liquidity and the ability to deploy capital more efficiently.
• Care.com’s Growth: Care.com, acquired by IAC in 2020, has transformed and expanded its platform under IAC’s ownership. It is now positioned as an industry leader in the \$400 billion family care market, with a strong brand, renewed technology, and expanded offerings including senior care, pet care, and housekeeping.

Implications for Shareholders

• Potential Share Price Impact: The divestment of Care.com, a significant asset, could materially affect IAC’s share value. Investors should note the liquidity generated from the \$320 million sale, which may improve IAC’s balance sheet and capital deployment options.
• Focus on Core Holdings: IAC’s strategic focus on People Inc. and MGM stake could be interpreted as a move to concentrate on high-potential assets, potentially leading to further corporate actions or asset sales.
• Profitability and Growth: Care.com is entering its next chapter from a strong position of profitability and strength. The transaction positions Care.com to accelerate growth, particularly in enterprise offerings and platform development, under new ownership.
• Leadership Changes: Pacific Avenue’s partnership with Care.com’s leadership (CEO Brad Wilson and team) signals continuity and commitment to growth, which may ease concerns about transition risk.
• Advisors: The transaction involved J.P. Morgan Securities LLC as exclusive financial advisor to IAC, Latham & Watkins LLP as legal counsel to IAC, Weil, Gotshal & Manges LLP as legal advisor to Pacific Avenue, and Moelis & Company LLC as exclusive financial advisor to Pacific Avenue.

Risks and Forward-Looking Statements

The press release contains forward-looking statements regarding the expected timing and completion of the transaction and its anticipated benefits. Actual results may differ materially due to a range of factors, including:

• Competition from artificial intelligence and disruption in marketing/publishing from AI-enabled search features (e.g., Google AI Overviews)
• Market and economic volatility, particularly those impacting advertising spending and consumer behavior
• Changes in relationships or policies with major partners like Google
• Ability to maintain relationships with quality caregivers
• Data protection and cybersecurity risks
• Risks related to liquidity, indebtedness, and access to cash from subsidiaries
• Leadership transitions and changes in capital deployment strategy

Investors should closely monitor further announcements, filings, and the SEC reports for updates and additional risk disclosures.

About IAC

IAC builds companies guided by curiosity and financially-disciplined opportunism. The company comprises category-leading businesses such as People Inc. and Care.com, and holds strategic equity positions in MGM Resorts International and Turo Inc. It is headquartered in New York City.

Investor Contacts

• Investor Relations: Mark Schneider, (212) 314-7400
• Corporate Communications: Valerie Combs, (212) 314-7251
• Headquarters: 555 West 18th Street, New York, NY 10011. iac.com

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors should consult official SEC filings and their financial advisors before making investment decisions.

View IAC Inc. Historical chart here